The Board of Directors of JSC “AEROFLOT”

06 April 2012

April 04, 2012, Moscow – JSC “Aeroflot” Board of Directors ordinary meeting was held today chaired by Kirill Androsov.

Relations with JSC “Sheremetyevo International Airport” and prospects for development of JSC “Aeroflot” at this airport have been considered at the Board of Directors meeting. The Company is interested in higher effectiveness of the whole “Sheremetyevo” complex as a base airport for its operations, which will be supported by integration of the most contemporary Terminal D managing company, JSC “Terminal”, into JSC “Sheremetyevo International Airport”. The decision to hold a joint JSC “Aeroflot” and JSC “Sheremetyevo International Airport” Board of Directors meeting this month has been made in order to discuss strategic questions and co-operation issues and work out necessary collective solutions.

The question on stake holding of the Group in subsidiaries and affiliated companies, which has been discussed at the meeting, is essential for strengthening and effective functioning of Aeroflot Group. JSC “Aeroflot” stakes in JSC “Rossiya Airlines” (75% - 1 share), JSC “Orenair” (100%), JSC “SAT Airlines” (100%) have been approved by the Board.

Regarding high dynamics of JSC “Aeroflot” operations and growing demand in additional aircraft, the Board has made a decision to approve 12-year leasing agreement for seven new Airbus A320-200 with AviaAM Leasing AB and Icelease ehf companies. Consequently Russia’s leading air carrier will substantially strengthen medium-haul segment of its fleet, which is to date one of the youngest and most effective in Europe.

The Board of Directors approved utilization of the most suitable financial instruments in order to hedge JSC “Aeroflot” cash inflows nominated in Euro against Euro/Ruble exchange rate decline.

The question on voluntary mechanisms for environmental responsibility, which JSC “Aeroflot” employs in addition to mandatory mechanisms regulated by environmental protection laws has been considered at the meeting. By means of measures already taken by the Company including its fleet modernization, environmental payments declined from 19.6 mln rubles in 2005 to 1.7 mln rubles in 2011. Specific fuel consumption declined by the third and amounted to 319 gr/tkm at the end of 2011. In order to maintain and strengthen JSC “Aeroflot” image as an international level air carrier, national carrier of Russian Federation and leader of domestic market, further implementation and development of voluntary mechanisms for ecologic responsibility has been deemed appropriate. Among discussed proposals were: certification of JSC “Aeroflot” to comply with international standard ISO 14001 (external audit), ecologically responsible partners (counterparties) selection system development, introduction of voluntary environmental responsibility insurance for JSC “Aeroflot”, improvement of informational transparency of measures taken to lower the negative impact on the environment. These decisions represent compelling evidence that Aeroflot is one of the most ecologically responsible companies of Russia.

The Board of Directors has approved two internal regulations, which are of significant importance for development of transparent and effective relations with partners and counterparties:

  • Regulation on communication development via Intergovernmental portal for state property management (software kit, implemented on official site of Federal Agency for State Property Management in order to communicate information regarding companies, where Russian Federation is a stakeholder);
  • Regulation on goods and services procurement for JSC “Aeroflot” needs.

The Board of Directors has approved transactions regarding JSC “Aeroflot” guarantee for JSC “Donavia” and JSC “Rossiya Airlines” in order to secure more favorable conditions for aircraft leasing by these subsidiaries. Moreover, the transaction between JSC “Aeroflot” and JSC “Donavia” regarding supply of IT-hardware and informational services and transaction with JSC “Rossiya Airlines” regarding technical support for aircraft of this carrier at “Sheremetyevo” airport, have been approved.

 

Aeroflot - Russia’s leading air carrier, member of the global SkyTeam alliance with a consolidated route network covering 926 destinations in 173 countries. In 2010, Aeroflot carried 11.3 million passengers, thus passenger traffic of Aeroflot Group totaled 14.1 million passengers.

Aeroflot is one of the most fast-growing airlines in the world according to SkyTrax. Besides company got the prestigious international SkyTrax World Airline Awards as "The best Eastern European Airline"

Aeroflot is the one of the world top 25 airlines ranked by for financial and economic results according to Air Transport World magazine (“operating profit” and “net profit” category) in 2010.

Aeroflot is the first Russian carrier to have entered the IOSA Registry, and to have regularly confirmed the certificate. Aeroflot has successfully passed the ISAGO (IATA Safety Audit for Ground Operations) procedure. The company’s Quality Management System is certified for compliance with ISO 9001:2008.

Aeroflot operates one of Europe’s youngest air fleet that consists of 112 aircraft. Aeroflot is located in Sheremetyevo International Airport, Moscow. Find more at www.aeroflot.ru.